Nvidia eclipses Microsoft as world's most valuable company

Nvidia became the world's most valuable company on June 18, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence technology.

According to Reuters, shares of the chipmaker climbed 3.5% to $135.58, lifting its market capitalization to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.

Microsoft's stock market value was $3.317 trillion as its shares dipped 0.45%.

Apple's stock slipped over 1%, leaving its value at $3.286 trillion.

Nvidia's stunning surge in market value over the past year has become emblematic of a Wall Street frenzy driven by optimism about emerging AI technology.

While Nvidia's rally has lifted the S&P 500 and Nasdaq to record highs, some investors worry that unbridled optimism about AI could evaporate if signs emerge of a slowdown in spending on the technology.

Nvidia has also become by far the most traded company on Wall Street, with daily turnover recently averaging $50 billion, compared to around $10 billion each for Apple, Microsoft and Tesla, according to LSEG data.

The chipmaker now accounts for about 16% of all trading in S&P 500 companies.